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t rudnicki

By Tim Rudnicki, Esq.

Let’s not confuse testing models with the real issues of the day, namely, the adverse effects of oil, a finite fossil fuel.  By the time you read this piece, several days will have passed since the study on biofuels from crop residue was released and many other commentators have written about their points of view that challenge the science behind some questionable assumptions in the study.  The operative word in all of this is science.  Science is important in the day-to-day production of biofuels just as science is important in other aspects of life.  Science is especially important when dealing with long-term energy and climate issues that will have a profound effect on humanity and the rest of the planet far into the future.

In this short piece, I attempt to unpack a few complicated issues with you and shift the spotlight to where I think it can do the most collective good.

We often hear the word “science” bandied about.  What is science?  Science, as defined in The American Heritage Dictionary of the English Language, is: “The observation, identification, description, experimental investigation, and theoretical explanation of natural phenomena.”  This rich definition suggests science is rather substantive.  How can we tell if an investigation or report uses the scientific method?

If, for example, I merely attempt to describe how biofuels are made, is that science?  Probably most of us would conclude the description of the biological process for making biofuels is not in and of itself science.  The reasoning behind that conclusion is simple: we are missing the other four essential elements of the definition which are observation, identification, experimental investigation (test, controlled conditions, demonstrate a known truth, examine the validity of a hypothesis, or determine the efficacy of something previously untried) and theoretical explanation of natural phenomena.  In short, we can determine whether an investigation or report is credible science by testing it against apolitical elements.

Interestingly, despite sound science that passes all the tests to be science, Greenwire news service from April 28, 2014, reports “polls show that significant swaths of the American public distrust climate science, even though scientists have been warning about the risks of climate change for several decades.”  Science is not about winning a popularity contest.  Remember, at one time, contrary to scientific findings, people believed the sun revolved around the earth.  So what can possibly explain the distrust some people have of climate science?  Could it be due to the way some scientists are vilified or how some critics cloud science with uncertainty?  More importantly, if we were to collectively embrace the climate science, as a people, state, nation and global community, we would be racing to further reduce our use of high carbon fuels such as oil.  We would be racing to find ways to be even more fuel efficient and indeed use a higher percentage of renewable biofuels since these fuels are derived from plant ingredients that work with the cyclical natural systems to absorb carbon dioxide and emit oxygen.

Now for some cloudiness.  Without going too deep into the merits, or soundness of science, behind the crop residue study done by the Department of Biological Systems Engineering, University of Nebraska, it seems this study gives critics of biofuels and proponents of oil just what they wanted.  With media attention focused on one part of a study that relies on 39 other studies instead of in the field measurements, it can create confusion and cloud the broad range of science on this complicated issue.  The crop residue study examines other reports and data and tests models and the effects of removing extremely high levels of corn residue from fields to make biofuels.  In fact an environmental team leader at the Argonne National Laboratory said the study looked at “extreme levels of corn stover removal — up to 100 percent.”  In the real world, however, stover removal ranges from 10% to 25%, well within the range required to replenish the soil.

The crop residue study itself does acknowledge its focus is on the removal of high levels of crop residue without any mitigation actions.  On the other hand, within the same study, specific mitigation factors and management options are suggested as actions that can be taken to balance soil carbon dioxide emissions.  In other words, the study tests what appears to be the absolute extreme effects associated with removing virtually all the crop residue and yet it does suggest ways to avoid the extreme so as to keep a balance between soil carbon and emissions.  Confusing, or confusing enough to take the spotlight off petroleum for a brief time?

Let’s take a look at the fine print of other studies and apply some critical thinking.  In the study Well-to-wheels energy use and greenhouse gas emissions of ethanol from corn, sugarcane and cellulosic biomass for US use, Argonne National Laboratory determined that ethanol made from corn starch reduces lifecycle GHG emissions from 48% to 57% below emissions from petroleum.  This study examined the full spectrum of emissions for fertilizer, farming, production of biofuels and combustion in vehicles.  Biofuels, such as ethanol, produced in Minnesota unequivocally reduce GHG emissions.

In the same study by Argonne National Laboratory, the use of corn stover, the material in the crop residue study done by the University of Nebraska, was examined.  Here is the finding from Argonne’s examination of the issue:  using the corn stover increases the GHG reductions to approximately 103% better than petroleum!  The critical factor that differs between the Nebraska study and Argonne is this: management of corn stover removal.  The Nebraska study is based on removing virtually all the stover whereas Argonne’s position was “The general consensus has been that we would manage corn stover removal to avoid adverse impacts to soil health, including a decline in soil organic carbon.”  

If we go back to the real issue of the day, it is GHG emissions and how to significantly reduce them.  Biofuels, including from corn stover (crop residue), is part of the solution.  The sound science we have, based on countless studies done over the years, should be enough to remove any clouds of doubt.  Those studies demonstrate that biofuels, including advanced biofuels that use crop residue, are indeed a solution to our climate change challenge because their lifecycle GHG emissions are far below those for petroleum.

Furthermore, renewable biofuels produced in Minnesota provide some solid economic benefits.  In a recently released comprehensive economic study conducted by John Dunham & Associates, we learn the production of biofuels in Minnesota injects $11.7 billion annually into the economy.  This same economic analysis finds the Minnesota biofuel producers help support 48,506 jobs (direct, induced and supplier), pay $3 billion in wages annually and contribute $1.1 billion annually in combined state and federal taxes.

While the fine print does matter, we should be clear about the issues.  The high carbon emitter in town is oil.  On the other hand, biofuels, for today and tomorrow, are an important renewable, low carbon emitting energy source.  Biofuels do, and will, continue to drive down GHG emissions to help stabilize the climate.  Biofuels do, and will, continue to be a big economic boost for Minnesota as well as the consumers who benefit from having a higher octane fuel that holds down the price of gasoline.  By keeping the focus on the real issues and applying science to further enhance the production of biofuels, we can indeed displace at least 30% of petroleum use in Minnesota by 2025 and be on a truly sustainable, low carbon biofuel cycle.

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t rudnicki

By Tim Rudnicki, Esq

Just a few days ago the National Conference of State Legislatures convened policymakers from across the country in Minneapolis. Several thousand legislators, legislative committee staffers and other interested observers of public policy development listened to presentations from a variety of subject matter experts on topics ranging from education to health care to energy to name just a few.

The purpose of the National Conference of State Legislatures is to create a venue in which policymakers can exchange ideas on some of the most pressing issues confronting states including on matters involving energy.

When it came to the issue of energy, however, the National Conference of State Legislatures (NCSL) fell flat in its efforts to stimulate the exchange of ideas about energy and, in particular, renewable energy such as biofuels.  Based on the energy sessions I attended, the mantra was the three "F's":  fossil fuels and fracking.

Although one keynote presenter acknowledged biofuels can play some role in meeting the need for liquid transportation fuels, a golden opportunity to make the case for biofuels was missed. For those who follow the biofuel industry in Minnesota and in other parts of the United States, the evidence is clear: biofuels provide significant benefits for the environment, consumers, the economy and in the drive toward greater energy independence.

If a picture is worth 1000 words, the images in the NCSL’s glossy energy policy guide tells only part of the energy story.  One can find photos of drilling rigs, cooling towers associated with electricity generation, rail tank cars, photovoltaics and wind turbines. Arguably some of the photos, such as the wind turbines and photovoltaics, suggest an energy policy might include renewable energy. But neither the text nor the photographs hint at a farm field or a biofuel plant.  And there are no charts showing the dramatic decrease in the amount of greenhouse gas emissions from biofuels compared to petroleum.

Interestingly, one of the energy plan goals refers to developing energy independence. Unfortunately, while the suggested plan makes reference to decreasing a State's dependence on foreign and out-of-state energy sources, the example cited to accmplish this goal is to use the natural gas resources rather than, for instance, other renewables such as corn starch or plant residue. 

I cite these examples in the hope that we can further expand a conversation about the role of biofuels in Minnesota, across the Midwest and throughout the nation.  I challenge them to have a conversation with policy makers to further explore creative ways in which we can introduce higher volumes of biofuels to consumers in the marketplace. We have lots to talk about as Minnesota is starting to lead the way on helping fuel retailers make E15 available to consumers. 

If I could make one suggestion to the NCSL, it would be this: let’s open up future discussions about planning for the energy future by affirmatively presenting the full scope of benefits offered by biofuels.  Let’s share with other state policymakers some of the innovative approaches Minnesota is taking to lessen dependence on finite fossil fuels, obtain environmental benefits, pump more dollars into the economy and help consumers save money at the pump.  While not every state can replicate the progress we are making in Minnesota to offer consumers more biofuels, a more balanced discussion about renewable energy policies could expand vocabularies to include the “b” word: Biofuels.

As always, you can direct your questions or comments to me This email address is being protected from spambots. You need JavaScript enabled to view it.

 

t rudnicki

By Tim Rudnicki, Esq

The carbohydrate economy, or the biofuel vision, has been in the works for more than 100 years. At present, the most significant manifestation of that biofuel vision is expressed in the Renewable Fuel Standard (RFS) and Minnesota’s Petroleum Replacement Statute (PRS). For those of us concerned about the future of biofuels and the role they can play in boosting our energy security, creating economic prosperity, helping consumers and reducing greenhouse gas (GHG) emissions, it is especially important that we take our right and responsibility to vote one step further. We need to diligently seek out candidates for elected office who really do understand and support biofuels, then we should vote for those candidates and once they are in office we need to hold them accountable for their actions that either hinder or help biofuels.

We've come this far. Let's not backslide. Most of you probably realize that the first Flex-Fuel Vehicle was the Model T which was introduced by Henry Ford in 1908. The Model T was designed to run on gasoline as well as ethanol. Although gasoline was the dominant fuel at that time because it cost about a third less than ethanol, gasoline prices rose significantly near the end of World War I. Those price increases for petroleum gasoline sparked a healthy debate about the role of biofuels as explained in “The Quest” by Daniel Yergin.

According to Yergin, some leading thinkers in the early 20th century were considering the advantages of biofuels over petroleum and a couple of prominent scientists had this to say about biofuels:

"(...alcohol is) a wonderfully clean-burning fuel… that can be produced from farm crops, agricultural waste and even garbage." - Alexander Graham Bell

"(alcohol fuel is) the most direct route which we know for converting energy from its source, the sun, to a material that is suitable for use as fuel." - Scientist for General Motors.

And biofuels did indeed get a boost in the marketplace.

Just as ethanol was on the rebound, the 18th Amendment to the Constitution took effect and alcoholic beverages were prohibited. This prohibition reached into the fuel sector as critics claimed that "To force the use of alcohol in motor fuel would be to make every filling station and gasoline pump a potential speakeasy." It was only after the 21st Amendment repealed Prohibition, and when the Great Depression took a toll on farmers and commodity prices, that ethanol became a key component in farm relief and within the fuel supply. By the late 1930s, "Agroblends" - a mixture of gasoline and alcohol - were sold across the Midwest.

But the success of ethanol in the Midwest and other parts of the United States was short-lived as evidenced by a series of events over the following 66 years. Shortly after World War II, ethanol, once again, fell out of favor. But by the 1970s the United States was dealing with the adverse economic hardship caused by the oil shocks. Subsequent energy policies served to once again encourage the development of ethanol facilities.

Unfortunately, when oil prices collapsed in the mid-1980s, ethanol, once again, faded away. This type of whipsaw effect was due, in part, to the absence of a comprehensive renewable energy policy and inaccurate and incomplete economic cues regarding the externalities associated with petroleum. The runaway petroleum industry, with all the overt and hidden subsidies, had taken a toll on the economy, energy security, the environment and consumers.

It was only in 2005, with the introduction of the RFS and the PRS, that policymakers demonstrated an understanding about the complex interplay between energy policy, the agricultural sector, consumers, the economy, energy security and the environment.

While it might seem farfetched to expect that 100 years of neglect and damage to biofuels could be reversed in 10 years, the RFS and PRS are doing just that. These laws, while not fully implemented yet, are helping to deliver many positive benefits to people across Minnesota and the Nation.

Due to the RFS and PRS, Minnesota has seen some dramatic improvements and tangible benefits on a number of fronts. As for energy security, Minnesota ethanol producers are displacing at least 1.1 billion gallons of finite, carbon intensive, petroleum. Although Minnesotans have yet to maximize use of all the biofuels produced within the state, current biofuel production levels are approximately one half of the total motor fuel consumed annually in Minnesota.

As for economic benefits, Minnesota-based biofuel producers annually are injecting approximately $11.7 billion dollars into the economy as we grow our liquid transportation fuel. Rather than sending our energy dollars out of Minnesota to purchase and import finite petroleum, energy dollars used to purchase homegrown renewable energy are dollars that go to Main Street Minnesota.

Consumers receive economic benefits directly at the fuel dispenser. The more visible benefit is in, for example, the difference in price between non-oxygenated gasoline versus regular unleaded gasoline (E10 which consists of gasoline at 90% and ethanol at 10%) versus E15 which ranges from 10 cents a gallon to 20 cents per gallon less than regular gasoline. While less obvious, an equally important economic benefit is the role ethanol plays in offsetting the demand for petroleum. Several comprehensive studies have found that the supply of ethanol at the wholesale and retail levels helps to suppress demand for, and therefore the price of, gasoline by up to $1.69 per gallon in the Midwest.

Biofuels, such as ethanol, provide energy security, economic and consumer benefits as well as a broad range of environmental benefits. For example, according to scientific findings and reports compiled by the Renewable Fuels Association, ethanol contains 35% oxygen which, when added to petroleum gasoline, promotes more complete combustion and thereby reduces harmful tailpipe emissions. Further, while ethanol displaces the use of toxic gasoline components such as benzene - a carcinogen - ethanol also decreases GHG emissions. In 2013 alone, the amount of ethanol produced in the United States reduced GHG emissions from on-road vehicles by 38 million metric tons which is equivalent to removing 8 million cars from the road.

But we’ve only just begun. The RFS and PRS have laid the foundation for a more durable and sustainable energy future. For nearly 100 years we have been beholden to petroleum, including all the risks that come from putting all of one’s proverbial energy eggs in one finite fossil fuel basket. Finally, thanks to the RFS and PRS, we have at least another seven and ten years respectively to more fully grow, use and realize the full scope of benefits from renewable biofuels.

As you prepare to vote on Nov 4, if you value the benefits of biofuels and want to keep moving forward rather than getting caught in the past biofuel whipsaw, take some time to do a bit of homework and put the tough questions to the incumbents and their challengers. Examine past votes the candidates might have taken on energy policy matters. Ask whether a candidate supports the RFS and the PRS. Determine what, specifically, the candidates have done, or propose to do, to advance the production and use of renewable biofuels? If a candidate states they support the RFS and the PRS and generally like biofuels yet they call for keeping E10 as the status quo, ask them to explain their position until you have a clear understanding of where they really stand regarding biofuels. Finally, after you have weighed the evidence and made your decision, be sure to cast your vote.

As always, you can direct your questions or comments to me This email address is being protected from spambots. You need JavaScript enabled to view it.

 

t rudnicki

By Tim Rudnicki, Esq

The dust is still settling following the recent mid-term elections and the U.S. EPA’s action to delay making a decision about the 2014 Renewable Volume Obligations (RVO).  Even though we can’t see clearly through the dust quite yet, some fundamentals and challenges remain the same.  At least for now.

 

With respect to some of those fundamentals, the Renewable Fuel Standard (RFS) and the Minnesota Petroleum Replacement Statute (PRS) are still intact.  These two laws provide the backbone for moving us as a State and Nation away from being beholden to carbon intensive finite fossil fuels and toward a society grounded more fully in the use of greater amounts of renewable energy.

 

But what should we make of the U.S. EPA’s announcement that it will delay finalizing the RVO until 2015?  As the dust settles on this issue, it is becoming clear that to delay making a decision is to not make a decision.

 

There is no excuse for the EPA to delay a decision. The black letter law of the RFS is clear as is the Congressional intent behind the law: push beyond petroleum’s comfort zone!  For years the petroleum industry has been comfortable with using enough ethanol to boost the octane in gasoline.  But the intent of the RFS is to lessen our dependence on finite fossil fuels. And the only way for that to happen is for the EPA to stand firm on the biofuel requirements set forth in the RFS.  For too many years the petroleum industry has been using Renewable Identification Numbers to buy its compliance with the RFS rather than actually working to make more biofuels available to consumers.

  

As explored in my last column, the history of biofuels has been a roller coaster ride over the last century because various public policies, whether overt or through hidden subsidies, have favored carbon intensive fossil fuels. It is the RFS and PRS, however, that are helping to smooth out the roller coaster ride for ethanol and other biofuels. That’s important for all of us as we try to free ourselves from the fossil fuel shackles and more fully enjoy the benefits of homegrown ethanol and other biofuels. The benefits of biofuels are in the form of greater energy independence, economic growth, consumer savings and environmental quality.

 

With respect to the elections, just as there has been a shift in the control of the U.S. Senate, so too, has there been a shift in control of the Minnesota House of Representatives. The Minnesota Bio-Fuels Association will continue to work with all Members of the Minnesota Congressional Delegation, the Minnesota Legislature and the Governor to remind everyone that biofuels are a bipartisan solution to the economic, energy and environmental challenges that confront us.

 

“The economic activity started by the renewable fuel sector creates a ripple effect as supplier firms and employees respond throughout the economy.”  John Dunham & Associates, Inc. (2014).  In practical terms, biofuel producers located in rural communities are a positive catalyst for economic growth in those communities as well as across Minnesota.  For instance, in the Twin Cities metropolitan area there are over 14,000 industry-related jobs which contribute approximately $3 billion annually to the economic well-being of the area.

 

Thanks in large measure to the RFS and PRS, renewable fuels also provide a strong overall economic boost to the economy, and there can be room for further growth of the biofuels industry if the RFS and PRS are allowed to function and consumers are allowed to have more choice at the fuel dispenser. Based on the Dunham & Associates Report from 2014, Minnesota’s renewable fuel industry generates approximately $11.7 billion of total annual economic output, supports over 48,500 jobs, generates $3 billion in wages annually and contributes $708.2 million in Federal taxes and $401.9 million in Minnesota taxes each year.

 

Economic, consumer and energy security benefits stemming from ethanol and other biofuels are also accompanied by some powerful environmental benefits. According to the Minnesota Environmental Quality Board, for example, biofuels are an important tool for reducing carbon emissions. By replacing carbon intensive petroleum with low carbon biofuels such as ethanol, Minnesota is projected to reduce carbon emissions by 874,000 metric tons which is equivalent to removing at least 188,000 cars off the road each year. That decrease in carbon emissions will grow as more biofuels are used. Biofuels help to reduce GHG emissions because green plants act as solar collectors which also use carbon dioxide to make and store energy. The energy stored in the plant is unlocked by biofuel producers to form ethanol and other biofuels.  Further, including all the energy used to grow the crops to the point where the ethanol is used as fuel in an engine, the total lifecycle carbon emissions for ethanol are up to 57 percent less compared to petroleum, according to a 2012 study by the Argonne National Laboratory.

 

Given all the potential the biofuels industry has to provide consumers with more low cost, low carbon renewable fuel; grow the economy; and increase energy independence, now is the time to stay the course and allow the RFS to work as it was intended. Is it expecting too much for the U.S. EPA to enforce the law?

 

As always, you can direct your questions or comments to me This email address is being protected from spambots. You need JavaScript enabled to view it.

t rudnicki

By Tim Rudnicki, Esq

Historical GasBuddy.com price charts tell some contrasting stories about the average retail price of gasoline over the last eleven years.  A gallon of gasoline skyrocketed from a low of $1.44, when a barrel of crude oil was selling for $29 just before the Iraq war, to $4.10 per gallon before the Great Recession when a barrel of crude oil was selling for $141.  Then the oil and gasoline prices of the Great Recession plunged to $34 per barrel and $1.64 per gallon of gasoline.  But those prices started to climb until they hit $112 per barrel and $4 per gallon of gasoline by the summer of 2011.  And yes, the price for a barrel of crude oil and a gallon of gasoline has dropped again, but where do you think those prices will be headed and why?

The “why” part of the question, for the moment, is beyond the scope of this short column.  Crude oil and gasoline prices stem from a host of global commodity market, economic, political, supply and demand and other rational and irrational factors.  Analyzing the why prices fluctuate issue would involve many factors including the battle between Saudi Arabia and U.S. shale producers as explained in our blog “Cheap Gas May Not Last For Long.

Focusing on the “where” are prices headed part of the question, however, might serve as a useful guide as we, as a society, attempt to make some timely, rational decisions about our energy future and concomitant quality of life.  To be clear, the “where” part of the question is complicated, but one underlying factor will continue to drive where the price of petroleum, regardless of the short-term price swings, heads and that factor is:  finiteness.

“Earth's endowment of conventionally reservoired crude oil is a large but finite volume.”  See the Energy Information Administration (EIA) article “Long-Term World Oil Supply Scenarios:  The Future Is Neither as Bleak or Rosy as Some Assert.”  As the report explains, the future is neither bleak nor rosy for a couple of reasons.  Based on a two percent crude oil growth rate, some predictions indicate the future recoverable amount of oil could meet demand for at least another 32 years or until approximately 2047.  At that time, however, revised predictions show a steep drop in recoverable oil over a span of only another 13 years.  In other words, we have a few years before life as we know it with crude oil ceases, but there really is a limited supply of crude oil no matter what oil producing nations do about short-term pumping strategies.

Put another way - crude oil, in all forms, will become increasingly scarce.  As the finite crude oil resource becomes increasingly scarce, the price will rise.  Eventually, the price per barrel of crude oil and a gallon of gasoline will rise to the point where the last few barrels on and in the earth will be too expensive to extract or use for a variety of purposes including transportation fuel.  My take on the recoverable crude oil predictions is this: if we, as a society, were to allow our quality of life to be dictated by crude oil, the future is actually very bleak.  Fortunately, we are liberating ourselves from the constraints of crude oil, a finite fossil fuel.

Thanks to the Renewable Fuel Standard and Minnesota’s Petroleum Replacement Statute, we are actually on a brighter, more rosy, energy path.  That path is heading toward greater availability and use of clean, renewable biofuels.  With renewable biofuels we can sustain a higher quality of life far into the future.

Biofuels, such as ethanol, are made from renewable plant material or biomass.  Plants, the original solar collectors, use sunlight, soil nutrients and carbon dioxide from the atmosphere to grow.  The plant material, or biomass, will be available for making biofuels and other products as long as good soil, adequate moisture and sunlight are available.  Biofuels can supply our energy needs today and far into the future because, unlike crude oil, biofuels are made from renewable, regenerative plant biomass.

Finite crude oil will continue to escalate in price while biofuels actually help to suppress fuel prices.  Professors Xiaodong Du and Dermot J. Hayes, Center for Agriculture and Rural Development, studied the impact the availability of ethanol in the fuel market has on the price of gasoline.  Their findings, which examined wholesale gasoline prices within the fuel supply chain, are astounding.  In the Midwest, for example, ethanol was found to offset the demand for petroleum and thereby had a price cascade effect which held gasoline prices down by as much as $1.69 per gallon. 

Let’s continue to heed the warning signs about finite crude oil and upward trending price lines for both crude oil and gasoline.  The prices may fall in the short-term, but historical pricing shows the trend line has been, and will continue to be, upward.  On the other hand, the Renewable Fuel Standard and Minnesota Petroleum Replacement Statute call for giving consumers access to more renewable biofuels.  So let’s not be lulled into complacency because the currently low gasoline prices will eventually shoot up again.

We still have some time to make a smooth transition from crude oil to greater use of renewable biofuels.  Here is what you can do today to make sure all of us stay on a sustainable, greener, more affordable energy future path:

1. The next time you go to fuel up at your favorite retail station, use E15 in your 2001 or newer vehicle.  If you don’t find E15 at your fuel retailer, (1) tell your fuel retailer you want E15 and ask when they plan to carry E15 and (2) tell me the name of your favorite fuel retailer so we can help them launch E15 for you.

2. If you have a Flex Fuel Vehicle, use E85.  If you don’t find E85 or other mid-level ethanol blends at your fuel retailer, (1) tell you fuel retailer you want E85 and ask when they plan to carry it and (2) tell me the name of your favorite fuel retailer so we can help them launch E85 for you.

3. Contact your legislators and let them know you support the Renewable Fuel Standard and the Minnesota Petroleum Replacement Standard because biofuels are (A) good for the environment (up to 57% fewer greenhouse gas emissions compared to gasoline), (B) support 48,000 jobs in Minnesota, (C) inject $11.7 billion into the economy each year, (D) keep energy dollars in Minnesota and (E) help consumers save money.  For more facts and where they come from, check out the MBA website at www.mnbiofuels.org .

From all of us at Minnesota Bio-Fuels Association, we wish you a Happy New Year.

As always, you can direct your questions to me This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

t rudnicki

By Tim Rudnicki, Esq

Yes, the Renewable Fuel Standard and Minnesota’s Petroleum Replacement Statute both call for increasing use of biofuels such as ethanol.  And, most importantly, consumers, based on our survey work, seek out and have been using increasing amounts of E85 and E15.  One complaint we hear from consumers, however, is about the lack of access to E15 or E85 at their favorite fuel retail station locations.

What can be done to give more consumers greater access to E15 and higher blends of biofuels and why does this matter?  Access to higher blends of biofuels does matter for some practical and profound reasons.  With 18 retail fuel stations in Minnesota now offering E15 (the “new regular”), many consumers have already had the opportunity to experience the satisfaction and benefits of using a “green fuel” in their vehicles.  They save money at the pump, keep energy dollars in Minnesota, use a product that supports thousands of jobs in Minnesota and drive down greenhouse gas (GHG) emissions. 

With respect to GHG emissions, if you are driving a non-flex fuel vehicle manufactured after the year 2000, you can immediately reduce GHG emissions the next time you fill your tank with E15.  By using E15 (5% more ethanol compared to regular gasoline) the carbon dioxide emissions drop.  The emissions drop because liquid biofuels are made from renewable ingredients that captured, used and stored solar energy.  Counting all the inputs used to grow crops, make and transport biofuels and use the biofuel in your vehicle’s engine, the GHG emissions are up to 57% less compared to petroleum gasoline.

How does the use of E15 translate into GHG numbers?  If the fuel used in Minnesota during 2013 had contained E15, carbon dioxide emissions would have been pushed down by another 399,161 metric tons.  That amount of reduction in GHG emissions by using E15 is equivalent to removing 84,034 vehicles from Minnesota roads for one year.  Put another way, that emission reduction from E15 is also equivalent to operating 110 wind turbines, each at 1.94 MW, for one year.  In other words, in addition to the economic, consumer and energy independence benefits associated with E15, E15 can contribute in a very profound way to reducing GHG emissions today!

So what can be done about giving more consumers greater access to E15?  First, let’s focus on the reality at retail fuel stations. Some who are content with the status quo (that is,  petroleum continues to limit consumer choice at the pump), might say it’s too difficult or too expensive for a retail fuel station to make the changes necessary to offer E15.  To that comment we would ask, what station are we talking about and what changes are you referring to?

Let’s get the site specific facts before drawing any conclusions.  A retail fuel station might already have the proper storage and dispensing system or otherwise be able to offer consumers E15 today.  The easiest way to find out is to contact the Minnesota Bio-Fuels Association.  Interested fuel retailers can explore whether their station might be an E15 candidate by simply calling Greg at 612.888.9138, ext. 104 and asking about the E15 Project.

One big incremental pathway forward for biofuels and consumers is within reach right now.  That pathway is called E15.  The Minnesota Bio-Fuels Association can help retailers determine if they are an E15 candidate.  E15 can provide retailers with an important addition to their product line up and give consumers the competitively priced high octane fuel that will keep them coming back for more.

As all stakeholders work to make more E15 available to consumers across Minnesota, we are building a solid parallel pathway that will make even higher blends of biofuels available to consumers in the coming years.  Maximizing all that can be done with E15 today will provide the solid parallel pathway we can use to give consumers even greater access to higher blends of ethanol and other biofuels.

Meanwhile, the next time you go to your retail station for a fill, look for E15 if you have a non-flex fuel vehicle manufactured after the year 2000.  If you don’t find E15, ask for it and give the retailer Greg’s telephone number.  By working together, we can do even more to give consumers greater access to renewable biofuels today and tomorrow.

As always, you can direct your questions to me This email address is being protected from spambots. You need JavaScript enabled to view it.

t rudnicki

By Tim Rudnicki, Esq

Minnesota State Agencies’ opaque, top-down approach to future fuels in the transportation sector is very disappointing and dangerous.  The Minnesota Pollution Control Agency (MPCA), Environmental Quality Board (EQB) and Department of Commerce are among several branches of State Government either participating in or using the Climate Solutions and Economic Opportunities (CSEO) project to create a new greenhouse gas (GHG) emission reduction policy.  By its own reckoning, the MPCA determined in 2013 that the combination of increased vehicle efficiency as well as biofuels helped to significantly reduce GHG emissions in the transportation sector.  Now, even with Governor Dayton’s repeated call for efforts to significantly increase the amount of biofuel available to consumers, the MPCA denies ethanol any future role in reducing GHG emissions.

What new finding led the MPCA to reverse its position on the positive role biofuels have played?  More importantly, what finding led the MPCA to set a predetermined policy outcome which (1) rejects the future role of ethanol and (2) caps biofuel use at E10 rather than embrace the more significant role biofuels, such as E15 and higher blends, can play in further reducing GHG emissions in the future?

In an attempt to understand the MPCA and CSEO positions on and reasoning about biofuels, the Minnesota Bio-Fuels Association (MBA) launched repeated agency information requests over a two month period of time.  Eventually MBA was provided with a spreadsheet.  The spreadsheet contains inaccurate information and assumptions about Minnesota’s petroleum replacement law, transportation fuel use and questionable lifecycle GHG calculations.  MBA’s follow up information requests to agencies were met with advice from a project facilitator to participate in a webinar session which purportedly was to allow for information exchange.  Instead, the webinar was limited to accepting written participant questions which were screened by the Environmental Quality Board.

The lack of transparency in the CSEO process was especially evident as the CSEO presenter attempted to over simplify and compartmentalize complex social, economic and environmental issues.  One written question read to the CSEO presenter asked: by what amount can E15 reduce GHG emissions compared to E10 (regular unleaded gasoline)?  Without any explanation regarding the variables in the equation, the CSEO presenter provided the answer - zero.

This lack of transparency by CSEO regarding models, variables and assumptions is at odds with the rest of the scientific community.  And this flawed CSEO process threatens to derail the progress Minnesota is making as it reduces GHG emissions in the transportation sector.  With respect to biofuels such as ethanol, there exists a vast body of knowledge and scientific information about the entire GHG lifecycle for ethanol including, for example, upstream and downstream emissions associated with growing renewable ingredients, biorefining and actually using biofuels, such as E15, in motor vehicles.

What are the facts?  What does science tell us, rather than an opaque agency top-down process, about E15 (15% ethanol, 85% gasoline)?  As reported on February 16, MBA checked with Dr. Steffen Mueller, principal research economist at the University of Illinois at Chicago, about E15’s potential to reduce CO2 emissions.  He informed us that a gallon of E15 saves 1.26 g of CO2 equivalent (CO2e) per megajoule over regular E10 (gasoline that contains 10 percent ethanol). CO2e includes carbon dioxide, nitrous oxide and methane.  Further, according to Mueller, should all 2.4 billion gallons of gasoline consumed annually be converted to E15 from E10, CO2e savings in the state would total 358,000 metric tons annually.  Using the U.S. Environmental Protection Agency’s greenhouse gas equivalencies calculator, this would amount to eliminating 75,368 passenger vehicles from Minnesota’s roads annually.

To the MPCA, EQB and Energy Division in the Department of Commerce we ask, what part of the science do you question?  Let’s have that conversation with scientists, not project facilitators.  How many more meetings do we need to have in an attempt to more fully inform the CSEO process when the process is actually closed to the facts and science?  Given the GHG emission reductions called for in Minnesota law and knowing E15 can be part of the solution by immediately reducing GHG emissions, when will Minnesota State Agencies reject the flawed CSEO process and allow the science on biofuels and GHG emission reduction to enter into the analysis?

As always, you can direct your questions to me This email address is being protected from spambots. You need JavaScript enabled to view it.

t rudnicki

By Timothy J. Rudnicki, Esq

A growing number of consumers are coming to expect E15 at all their favorite retail fueling stations and have concerns when they can’t find E15. Generally, those concerns are called into the Minnesota Bio-Fuels Association with the callers prefacing their questions like this: I have been using E15 for the last six months because I am saving money at the pump, I know the higher octane is good for my engine, I feel good about using a renewable fuel, but what do I do if I can’t find E15?

We appreciate your inquiries. The question about “what to do when E15 is not available” signals to us that consumers really do care about the type of fuel they use in their vehicles. To the questioners, we now have two answers for you. First, if you’ve been using E15 for your 2001 or newer vehicle but can’t find it near you, ask your neighborhood retailer to carry E15. The Minnesota Bio-Fuels Association can help these retailers, wherever they are in Minnesota, learn about E15 and assist them in taking the necessary steps to begin dispensing it.

Second, to all those who would like to see even greater access to and availability of E15, call your legislators and ask them to support the E15 Dispenser bill which has been introduced in both houses of Minnesota's state legislature (Senate File 1912 and House File 1904). This bill can pave the way for E15 to be made widely available throughout Minnesota.

Among the key components of the bill is to address issues currently faced by retailers interested in offering E15. As it stands, there is an information void with regards to consistent, reliable and accurate technical information regarding fuel storage and dispensing systems when it concerns E15. Moreover, in some cases, there are retailers that only need to make a few simple changes to their fuel dispenser to offer E15. The E15 Dispenser Bill will streamline the process and make it easier for retailers to carry E15.

Some 300, or 10 percent, of fuel retailers in the state will be partnered with under the first phase of the E15 Dispenser bill and once these stations begin offering E15, we will make a significant step towards reducing statewide greenhouse gas emissions.

When E15 becomes the new regular fuel in Minnesota, annual CO2 equivalent emissions will be reduced by 358,000 metric tons (equivalent to removing 75,368 passenger vehicles form Minnesota's roads for a year). Moreover, under the E15 Dispenser bill, consumers stand to save between $7.6 million to $10.9 million at the pump as E15 is generally priced 7 to 10 cents lower than regular unleaded gasoline.

Minnesota legislators recognize that more and more of their constituents would like access to E15 because it’s a high-octane fuel (88 octane rating) that reduces greenhouse gas emissions and prices at the pump. But to ensure passage of this bill and deliver this victory to all Minnesotans, be sure to voice your support for Senate File 1912 and House File 1904. For more details, please contact me This email address is being protected from spambots. You need JavaScript enabled to view it..